Consumer confidence bounces back in April

The Conference Board Consumer Confidence Index increased in April, and now stands at 68.1 – a 6.2 surge from its 61.9 in March.

The Present Situation Index that measures short-term confidence increased to 60.4 from 59.2. The Expectations Index that measures attitudes about the economy six months from now improved to 73.3 from 63.7 last month.

“Consumer confidence improved in April, as consumers’ expectations about the short-term economic outlook and their income prospects improved,” says Lynn Franco, director of economic indicators at The Conference Board. “However, consumers’ confidence has been challenged several times over the past few months by such events as the fiscal cliff, the payroll tax hike and the sequester. Thus, while expectations appear to have bounced back, it is too soon to tell if confidence is actually on the mend.”

Consumers’ assessment of current conditions improved moderately in April. Those saying business conditions are “good” increased to 17.2 percent from 16.4 percent, while those stating business conditions are “bad” decreased to 28.1 percent from 29.1 percent.

Consumers’ assessment of the labor market was mixed. Those claiming jobs are “plentiful” edged up to 9.8 percent from 9.5 percent, however those claiming jobs are “hard to get” increased to 37.1 percent from 35.4 percent.

Consumers were considerably more upbeat about the short-term outlook. The percentage of consumers expecting business conditions to improve over the next six months increased to 16.9 percent from 15.0 percent, while those anticipating business conditions to worsen decreased to 15.1 percent from 17.7 percent.

Consumers’ outlook for the labor market was also more positive. Those expecting more jobs in the months ahead improved to 14.2 percent from 13.0 percent, while those expecting fewer jobs decreased to 22.4 percent from 26.0 percent.

The proportion of consumers expecting their incomes to increase rose to 16.8 percent from 14.6 percent, while those expecting a decrease declined to 16.0 percent from 17.7 percent.

Nielson conducts the monthly Consumer Confidence Survey, based on a probability-design random sample, for The Conference Board. The cutoff date for the preliminary results was April 18.

Source: Florida Realtors®